Skyscanner builds out more domestic product, adds insurance bundle
AS the Covid-19 virus weaves different paths through the world it is having similar effects on traveller sentiment across different regions. Said Hugh Aitken, Skyscanner’s vice president of flights, “On the one hand, in Europe, there is a huge appetite to get away with more international destinations opening and we are seeing bookings while in APAC, it is quite different, the appetite is there but the pessimism is evident.”
Speaking to WiT on the release of its new report, ‘Skyscanner Horizons – The Return of Travel’, which reveals eight new and emerging trends in travel (see related article), Aitken said, “The confidence is slightly slower in Asia and it’s largely market dependent. Domestic in Australia has grown, travellers are spending less overall and they are not looking for the cheapest flight.
“Trip duration in South Korea has risen from nine days in 2019 to 15 while in Australia, it’s declined to 16 vs 21 in 2019.”
In terms of searches, 56% of searches in Australia were domestic vs 27% in 2019 and domestic searches in South Korea have grown from 19% to 50%. Globally, the share of domestic search on Skyscanner has risen to 17% to 23%.
Given the shift to a domestic world, Skyscanner is building out its domestic product as well as data. “We always had strong domestic coverage, it’s always been important for us, but it’s not as strong as our international business. So we have done more around domestic hotels, air content, road trips, offers and talking to travellers about domestic deals and inspiring them,” said Aitken.
Having said that, he is encouraged by the pent-up demand for travel among consumers, seen in spikes in searches as soon as travel bubbles are announced. “Day to day, when the bubble between Israel and Cyprus was announced, we saw a 1,570% increase in searches from Israel to Cyprus. Between Australia and New Zealand, we saw a 1,600% increase.”
When the latest Singapore-Hong Kong travel bubble was announced (opening May 26), spikes in searches were less pronounced, perhaps due to customer scepticism that the corridor will actually open since it’s been attempted in the past. And the latest tightening of restrictions in Singapore, amid rising community cases, has put that plan in doubt once again.
Aitken said that Skyscanner did see a 316% week-on-week increase in searches between Singapore and Hong Kong – “however the volumes are pretty low. We do however expect this to increase as partners in the region are investing in advertising on our platforms.”
In rolling out its “Skyscanner Horizons” report, in which it interviewed 5,000 consumers globally, Aitken said he is encouraged by the rise in confidence levels among consumers. “There is growing consumer confidence with the vaccine rollout and the formation of travel bubbles.”
A few trends stood out for him – in domestic travel, there is a move from major cities to secondary destinations, booking windows are lengthening, trips are getting longer and travellers are not looking for the cheapest ticket. “They are looking for value for money, convenient flight times, fewer stops and what the airline is doing to keep me safe. There is a thirst for information on which to make informed decisions – trust is a big part. Who do I trust to book with? Who do I trust to travel with?’
To respond to these customer needs, Skyscanner has rolled out these products, including an insurance bundle and expanded hotel inventory through partners.
- Covid confidence ratings for all airline itineraries, launched mid 2020
- Interactive restrictions map
- Data products, its new front end tool for partners. Primarily aimed at airlines, airports and DMOs, it is increasingly receiving interest from organisations outside of travel across a variety of industries.
- Insurance (bundle and now in funnel), soon to be launched in APAC markets
- Improvements in hotels product inventory and overall functionality; inventory from Booking.com, Trip.com, Hotels.com, Hyatt, Intercontinental and Agoda
- Fare families – “we continue to invest and explore in direct booking functionality to help airlines maximise revenues by displaying fare family and ancillary content within a branded flow”, said Aitken.
“We are in the initial stages of recovery. It remains a difficult year but there is definite demand out there,” said Aitken.
• Featured image credit: scaliger/Getty Images